Lenovo’s Says RT Tablets Up to $300 Cheaper Than Win 8

By Ian King -
Aug 16, 2012

Lenovo Group Ltd. (992), the world’s
second-biggest maker of personal computers, said new devices
based on Microsoft Corp. (MSFT)’s Windows RT software will cost $200 to
$300 less than competing products using Windows 8 software.

“RT will play in consumer and retail at very aggressive
price points,” said David Schmoock, head of Lenovo’s North
America operations. “It will do well but it’s going to be more
of a consumer price point play to begin with,” he said, in an
interview today.

Windows 8 has more compatibility with other Windows
software, making it more attractive to corporations, while
Windows RT will “be a very good consumer box,” Schmoock said.
Windows 8 tablets will cost $600 to $700, he said.

Separately, the Intel Corp.-led push to make notebooks more
attractive to consumers with thinner and lighter devices it’s
branding Ultrabooks, may struggle to meet the chipmaker’s goals
this year, according to Schmoock. Intel has said the devices are
on course to account for 40 percent of consumer-notebook PCs by
the end of this year. Schmoock estimates that they are more
likely to grab a 20 percent to 25 percent market share.

Intel’s Ultrabook

Success of the initiative will depend on how quickly
computer makers can bring down the price of the products, he
said.

“It’s going to require a very strong first couple of weeks
of launch of Win 8,” said Schmoock. “They’ll be a lot bigger
than they are now. I don’t know if it will get all the way up to
40 percent.”

Intel “always sets aggressive” targets, Kari Aakre, a
spokeswoman for the Santa Clara, California-based company, said.
“We’re not backing off our goals,” she said in a telephone
interview.

“We think Ultrabook is the best solution for what
consumers want.”

Lenovo reported a 30 percent increase in profit in the
three months ended June 30, as sales increased faster than the
overall personal-computer market and came closer to taking
Hewlett-Packard Co. (HPQ)’s No. 1 spot.

Lenovo, which has headquarters in Beijing and Morrisville,
North Carolina, gained 6.3 percent to HK$6.60 in Hong Kong
trading, the highest since June 22. The stock has risen 27
percent this year, surpassing the 8.3 percent gain for the
city’s Hang Seng Index.